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International Maritime Organisation – Low Sulphur Regulations

By 27/11/2018April 7th, 2020No Comments

Since the creation of the first Emission Control Area in the Baltic Sea 10 years ago, all ocean going vessels are now subject to stricter Global regulations.

The new International Maritime Organisation (IMO) low sulphur regulations become effective 1st January 2020, which requires all shipping companies to reduce their sulphur emissions by 85%.

The new regulation aims to reduce the environment impact of the shipping industry in order to significantly improve air quality.

Trade experts estimate an initial cost of US$60 billion annually across the entire shipping industry.

The meet these new criteria shipping lines are already investing in new technology to power their ships and use more costly low sulphur fuels in order to meet the 31st December 2019 deadline.

We are expecting Shipping Lines to look to recover these additional costs via the implementation of a Low Sulphur Surcharge (LSS), or combine the effect of ‘LSS’ & ‘EBAF’ with the introduction of a ‘Marine Fuel Recovery Surcharge’.

We expect this to be gradually implemented as from 1st January 2019.

SGL will keep clients advised as and when we receive factual confirmation from the Shipping Lines who will individually apply their own format of recovery and as with EBAF we will pass these on as a separate additional charge at cost if and when applied by the line.


Yours faithfully,

The Logistics Team @ SGL